SIRI : Medium to long term upside potential looks impressive
April 6, 2011 Leave a comment
SIRI’s longer term chart always gives us a laugh – it is one of the best lessons in property bubbles and their associated insanely high stock prices for listed developers the world over, and in this case it was back in the 12 months prior to the Asian financial meltdown, this stock went from a high of 67 just after IPO to 7 in just a few months.
Now SIRI is approaching a major turning point in its life, with a weekly close or two above 6.30 likely to see an extend bull run to at least 8, if not far higher.
For now we will consider a swing trade from 5.50 or so, with a 4-5 spread stop and first target at 6.30, a second target at 7.00-7.20 the 8.
Could this stock rally to 12-13 again? Yes we say…but probably not this year.
We think Vietnamese listed property companies should take note. There is no way on this sweet earth HCMC property is worth 2, 3 or 4 times Bangkok. No way…. but it is. Ready for a good decade or two of pain in our view. A no brainer arb trade. Sell your HCMC property and get triple the value in Thailand.
Indeed Thailand offers the best property value in ASEAN, which is a fact we hear the Japanese are discussing much.